The dollar was steady on Wednesday before a Federal Reserve meeting to determine policy for an uncertain economy and as major investors in Asia continued to cash out of U.S. assets.

News that the United States and China will hold talks on Saturday eased concerns about a trade war that has shaken investor confidence in the dollar and U.S. markets. Fed Chair Jerome Powell is expected to say more data is needed before deciding on the U.S. central bank's next move.

There appears to be a slowdown in dollar selling since last week, which has been driven by investors globally, particularly in low-yielding emerging markets, who are swapping currencies or bringing cash home.

The Taiwan dollar's ​​record rally has spread beyond it, driving the currency up in Singapore, South Korea and elsewhere in Asia this week. Taiwan's currency has surged more than 10% against the U.S. dollar since U.S. President Donald Trump's April 2 announcement of sweeping tariffs on trading partners. It weakened 0.65% on Wednesday.

The Korean won hit a six-month high at the open on Wednesday but has since retreated.

The yuan weakened as China announced a long-awaited interest rate cut.

China's central bank governor said on Wednesday the bank will cut the amount of cash that banks must hold as reserves, the first reduction since 2025, to shore up the world's second-largest economy amid a simmering trade war.

The dollar index was little changed after falling 0.2% on Tuesday, its third straight decline. The euro weakened 0.2% to $1.1340, giving up some of its gains after Friedrich Merz was elected German chancellor. (Newsmaker23)

Source: Reuters